Overview

The EU is a major producer of beef and veal with a total herd of around 78 million cattle. The EU supports its farmers through income support payments. Additionally, the EU uses a number of market measures to stabilise beef and veal markets when necessary.

Market measures in the beef sector

The European Commission may use public intervention to support beef prices if, over a representative period, the average market price in an EU country or in a region of an EU country drops below €2,224 per tonne. Additionally, the Commission may decide to grant private storage aid, if there is a drop in average prices, a substantial change in production costs or another factor causing significant changes in margins that is damaging to the sector.

The EU also has the power to use exceptional market support measures when specific circumstances mean that public support is required, for example, in cases of animal diseases or a loss of consumer confidence.

The EU also supports beef farmers through specific exemptions for producer organisations in the beef sector. Under certain conditions, producer organisations in the beef and veal sector may negotiate the extent of supply.

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Market measure explained

Producer and interbranch organisations

Trade with non-EU countries

Imports of beef and veal to the EU are organised by a system of tariff rate quotas. Quotas may be open to all ("Erga omnes") or allocated to a specific country. The management of these quotas may be on a first come/first served basis or regulated by a system of licenses.

Legal bases

EU regulation 1308/2013 – establishing a common market organisation of the markets.

EU regulation 2017/1182 – EU scales for the classification of beef.

EU regulation 2017/1184 – rules for reporting of market prices of beef.

Market monitoring

The EU monitors the beef and veal market in order to identify market instability, provide accurate information to farmers and processors on the market situation and to help public policy decision making.

There is an EU wide system of carcass classification, which alongside price reporting and other statistical information is the basis of the EU's price monitoring system. This is also used as a basis for the grading of carcasses in slaughterhouses and fair payment to farmers.

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Outlook

Market observatory

Committees

Various committees, composed of government representatives and chaired by a European Commission representative, meet regularly to ensure that the Commission's responsibility for adopting implementing acts is exercised under the control of EU countries.

The committee for common organisation of agricultural markets meets regularly to discuss areas such as the evolution of market prices, production and trade in the EU and non-EU countries.

The civil dialogue group and working group on animal products maintains the role of assisting the Commission in maintaining a regular dialogue on all matters related to beef and veal.

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